The Solution To Record Meat Prices: The Return Of Pink Slime
zerohedge.com / Tyler Durden / 05/25/2014 10:29 -0400
A few months ago we reported that while the Fed is seeing nothing but hedonic deflation as far as the eye can see, food prices – for whatever reason but “certainly not” due to trillions in liquidity entering a close system so just blame it on the weather – were soaring to record highs. Among them was the price of beef, which in 2014 alone has soared by the most in over a decade. This led the US Department of Agriculture to warn of “sticker shock” facing home chefs on the eve of the Memorial Day holiday weekend, the unofficial start of the U.S. summer grilling season.
According to the USDA, reported by Reuters, conditions in California could have “large and lasting effects on U.S. fruit, vegetable, dairy and egg prices,” as the most populous U.S. state struggles through what officials are calling a catastrophic drought. Alas, the USDA had nothing to say about the Fed’s unprecedented desire to reflate the US economy which is still suffering from the catastrophic depression which started nearly 7 years ago.
READ MOREThe consumer price index (CPI) for U.S. beef and veal is up almost 10 percent so far in 2014, reflecting the fastest increase in retail beef prices since the end of 2003. Prices, even after adjusting for inflation, are at record highs.